Good Year, Bad Tax Bill

tax billEvery successful entrepreneur is likely to have experienced that first surprisingly large (gasp) tax bill. The reality of having a really good year is that you were too busy working your butt off to think about socking away more money for taxes. read more…

The Magic Number that Makes You Breathe a Sigh of Relief

magic number2We’ve all got that number. You know which one I’m talking about – It’s the income number that let’s you breathe a sigh of relief, the one that gives you the financial space to actually be able to go out and buy the things you need and (gasp) the things you want. This is the number that makes it so that you are not worried about money all of the time. When you find it, be prepared. You might feel downright abundant for once. That number exists. Have you figured yours out yet? read more…

Growth is Hard

Growth is Hard March NewsletterYou’ve been working, planning, making connections, and streamlining your finances. After all of that, your business is growing faster that you expected. That’s great news, right? You have a workflow; you have a plan. So, why do you feel like you’re in the weeds all of the time? Everyone knows that entrepreneurs are some of the hardest working folks in business, but—listen up, this is important—you are only one person.

Growth is hard! When an entrepreneur experiences growth, it can feel like carrying the weight of the world on your shoulders. One person can no longer fulfill every role. You need more support, but it can be difficult to determine how much support you need. Anyway, who has the time to hire and train?

The truth is that if you want your business to continue growing, you are going to have to make the time. Just like the old adage says, “it takes money to make money,” you need to invest in support staff.

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The Ins and Outs of Cash Flow

cash flow and signs

Knowing what your cash flow is at any given time is important for all businesses, but especially for entrepreneurs who may not have the luxury of deep pockets. This is especially true during periods of business growth. Why? Because your expenses go out before your income has time to catch up. You’ve got to manage your cash flow before you grow. That way, you are always ready and one step ahead.   read more…

Owning an LLC: Do I Take a Draw, Salary, or Distribution?

LLCAn LLC is a popular type of business structure these days, mostly because of its flexibility and ease of setup. Almost every LLC owner I’ve worked with, though, didn’t have a clue about whether they should be on payroll or take a draw.

What most people don’t understand is that an LLC is a state designation, not an IRS designation. Even though you choose to be an LLC, you still have to choose to be something else to the IRS. So, what does this mean? read more…

Building a Financial Foundation

financial foundationEvery business owner needs a basic financial parachute in place. What does this really include, though?

  • If you want to get down to just the basics, that includes insurance and at least one month’s rent and payroll expenses in your bank account as a buffer.
  • If your business is cyclical, then you’ll likely need more, enough to cover your slower months.
  • If you’re in retail and collect sales tax, keep the tax collected in a separate savings account and consider it off limits. You heard me—put it somewhere you are not tempted to spend it.

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The End of the Year is Upon Us

2014It’s happened, somewhere between the fall colors, turkeys, and holiday travel, the days of 2014 have dwindled to just a few. Sadly, the next season is tax season, and it’s better to get organized now than wait for the eleventh hour. You likely made personal resolutions for 2015, so why not financial ones? Before you can start fresh, though, you’ve got to reconcile your accounts and expenses. read more…